Addition of Thai Smile will expand parent firm’s appeal: CEO
The merger of Thai Airways International Plc (THAI) and its wholly-owned subsidiary Thai Smile Airways has been approved by the Thai Airways Creditors Committee, THAI CEO Chai Eamsiri said.
The committee approved the merger yesterday as part of the parent company’s restructuring plan, Chai said.
Thai Smile’s fleet of 20 aircraft will be transferred to THAI this year, he said. The move will cut operational costs by up to 20% and add 11 flight hours per day.
Thai Smile’s 20 aircraft were leased from THAI.
THAI expects that the consolidation will result in improved aircraft utilisation rates.
Thai Smile's average aircraft utilisation is only 9 flight hours per day, while THAI operates at an average of 12-13 flight hours per day.
By using Thai Smile's Airbus A320 aircraft, Thai Airways will increase its daily aircraft utilisation by 11 flight hours.
This will enable the airline to cover more domestic and international routes, extend its night-time flight hours, and reduce operations costs by up to 20%, Chai said.
This is a positive outcome of THAI’s restructuring, he added.
THAI will inform the Stock Exchange of Thailand about the resolution of the creditors' meeting, after which the process of transferring management rights of the 20 aircraft will commence.
Notifications will be sent to the Civil Aviation Authority of Thailand and the Ministry of Transport.
Thai Smile’s Air Operator's License will be revoked.
